Location: Sharp County, AR | Metro: Fulton County, AR
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,100 | $122,686 | 0.9% | C |
| 3BR | $1,500 | $177,341 | 0.85% | C |
| 4BR | $1,740 | $293,571 | 0.59% | F |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 72529, centered around Cherokee Village, AR, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,090, while the Census ACS data indicates that the current market rent is $951. This creates a gap of $139, or approximately 14.6%, where the FMR exceeds the market rent.
This scenario benefits landlords and small-portfolio investors who accept Section 8 vouchers. Voucher tenants ensure a steady, government-backed rental income that aligns with the higher FMR. Given the lower market rent of $951, accepting voucher tenants allows property owners to capitalize on the yield difference, effectively renting properties at a rate above what the market would typically bear.
In the context of Cherokee Village, AR, the implications are clear. With only 15.7% of residents being renters, there's a limited pool of potential tenants. However, the median home value of $150,129 and median income of $37,355 suggest that many homeowners might find it challenging to afford rental properties at market rates without assistance. Thus, the Section 8 program acts as a financial bridge, enabling these individuals to secure housing.
The government pays the difference between the tenant's contribution, which is generally 30% of their income, and the FMR. For a median-income household earning $37,355 annually, or roughly $3,113 monthly, the tenant's portion would be about $934. This means that even though the FMR is higher at $1,090, the actual payment received from the voucher program would be closer to the market rent, making it an attractive option for landlords.
However, it's crucial to note that managing Section 8 properties comes with its own set of regulations and requirements. Landlords must adhere to housing quality standards and undergo regular inspections. Despite these challenges, the financial advantage of renting at FMR levels while the market is willing to pay less makes it a strategic choice for maximizing returns in Cherokee Village, AR.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.